Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) shares are up nearly 6% as of this writing, after the RNAi therapeutics company announced a collaboration with Amgen (NASDAQ:AMGN) on two cardiovascular disease assets. Under the terms of the agreement, Amgen receives a worldwide exclusive license option to these assets in exchange for Arrowhead receiving $56.5 million in upfront payments.

Chardan analyst Madhu Kumar commented, “Today’s partnership further demonstrates Arrowhead’s ability to execute its development strategy. On the 3Q16 earnings call on 9 August 2016, Arrowhead management stated, “we [have] made a strategic shift to seek preclinical discovery stage development partnerships that could expand the reach of our technologies in areas that are outside of our core focus or beyond our current capabilities and financial resources.” Today’s announcement reflects a key validation of this approach.”

“While today’s Amgen/Arrowhead partnership is at an earlier stage of development relative to the Alnylam/Sanofi deal, we believe such continued interest in RNAi companies from large-cap biopharma is an important positive indicator for the RNAi technology platform,” the analyst concludes.

Kumar reiterated a Buy rating on shares of Arrowhead, with a price target of $10, which implies an upside of 32% from current levels.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Madhu Kumar has a yearly average return of -0.8% and a 61% success rate. Kumar has a 21% average return when recommending ARWR, and is ranked #2891 out of 4181 analysts.

All the 4 analysts polled by TipRanks (in the past 3 months) rate Arrowhead stock a Buy. With a return potential of 48%, the stock’s consensus target price stands at $10.55.